SB 587 — Wake Surfing Safely.

In determining monetary compensation, the court shall consider the factors set forth in subsection (e) of this section.

Upon payment of monetary compensation for the sign,off-premises outdoor advertising, the local government shall own the sign.off-premises outdoor advertising.

(g) In lieu of paying monetary compensation, a local government may enter into an agreement with the owner of a nonconforming off-premises outdoor advertising sign to relocate and reconstruct the sign.off-premises outdoor advertising.

The agreement shall include the following:

(1) Provision for relocation of the sign off-premises outdoor advertising to a site reasonably comparable to or better than the existing location.

In determining whether a location is comparable or better, the following factors shall be taken into consideration:

Senate Bill 587-First Edition Page 5 General Assembly Of North Carolina Session 2025 a.

The size and format of the sign.off-premises outdoor advertising.

b.

The characteristics of the proposed relocation site, including visibility, traffic count, area demographics, zoning, and any uncompensated differential in the sign owner's cost to the owner of the off-premises outdoor advertising to lease the replacement site.

c.

The timing of the relocation.

(2) Provision for payment by the local government of the reasonable costs of relocating and reconstructing the sign,off-premises outdoor advertising including the following:

a.

The actual cost of removingthe sign.off-premises outdoor advertising.

b.

The actual cost of any necessary repairs to the real property for damages caused in the removal of the sign.off-premises outdoor advertising.

c.

The actual cost of installing the sign off-premises outdoor advertising at the new location.

d.

An amount of money equivalent to the income received from the lease of the sign off-premises outdoor advertising for a period of up to 30 days if income is lost during the relocation of the signoff-premises outdoor advertising.

(h) For the purposes of relocating and reconstructing a nonconforming off-premises outdoor advertising sign pursuant to subsection (g) of this section, a local government, consistent with the welfare and safety of the community as a whole, may adopt a resolution or adopt or modify its ordinances to provide for the issuance of a permit or other approval, including conditions as appropriate, or to provide for dimensional, spacing, setback, or use variances as it deems appropriate.

(i) If a local government has offered to enter into an agreement to relocate a nonconforming off-premises outdoor advertising sign pursuant to subsection (g) of this section and within 120 days after the initial notice bythe local government the parties have not been able to agree that the site or sites offered by the local government for relocation of the sign off-premises outdoor advertising are reasonably comparable to or better than the existing site, the parties shall enter into binding arbitration to resolve their disagreements.

Unless a different method of arbitration is agreed upon by the parties, the arbitration shall be conducted by a panel of three arbitrators.

Each party shall select one arbitrator, and the two arbitrators chosen by the parties shall select the third member of the panel.

The American Arbitration Association rules shall apply to the arbitration unless the parties agree otherwise.

(j) If the arbitration results in a determination that the site or sites offered by the local government for relocation of the nonconforming signoff-premises outdoor advertising are not comparable to or better than the existing site, and the local government elects to proceed with the removal of the sign,off-premises outdoor advertising the parties shall determine the monetary compensation under subsection (e) of this section to be paid to the owner of the sign.off-premises outdoor advertising.

If the parties are unable to reach an agreement regarding monetary compensation within 30 days of the receipt of the arbitrators' determination and the local government elects to proceed with the removal of the sign, off-premises outdoor advertising then the local government may bring an action in superior court for a determination of the monetary compensation to be paid by the local government to the owner for the removal of the sign.off-premises outdoor advertising.

In determining monetary compensation, the court shall consider the factors set forth in subsection (e) of this section.

Upon payment of monetary compensation for the sign,off-premises outdoor advertising, the local government shall own the sign.off-premises outdoor advertising.

(k) Notwithstanding the provisions of this section, a local government and an off-premises outdoor advertising sign owner may enter into a voluntary agreement allowing for Page 6 Senate Bill 587-First Edition General Assembly Of North Carolina Session 2025 the removal of the sign off-premises outdoor advertising after a set period of time in lieu of monetarycompensation.

A local government may adopt an ordinance or resolution providing for a relocation, reconstruction, or removal agreement.

(l) A local government has up to three years from the effective date of an ordinance enacted under this section to pay monetary compensation to the owner of the off-premises outdoor advertising provided the affected property off-premises outdoor advertising remains in place until the compensation is paid.

(m) This section does not apply to any ordinance in effect on July 1, 2004.

A local government may amend an ordinance in effect on July 1, 2004, to extend application of the ordinance to off-premises outdoor advertising located in territory acquired by annexation or located in the extraterritorial jurisdiction of the city.

A local government may repeal or amend an ordinance in effect on July 1, 2004, so long as the amendment to the existing ordinance does not reduce the period of amortization in effect on June 19, 2020.

(n) The provisions of this section shall not be used to interpret, construe, alter, or otherwise modify the exercise of the power of eminent domain by an entity pursuant to Chapter 40A or Chapter 136 of the General Statutes.

(o) Nothing in this section shall limit a local government's authority to use amortization as a means of phasing out nonconforming uses other than off-premises outdoor advertising." SECTION 10.(e) G.S.

160D-912.1 reads as rewritten:

"§ 160D-912.1.

On-premises advertising.

(a) As used in this section, the following definitions apply:

(1) Monetary compensation.

– An amount equal to the sum of (i) the greater of the fair market value of the nonconforming on-premises advertising sign that is not in compliance with a development regulation in place immediatelyprior to the removal or the diminution in value of the real estate resulting from the removal of the on-premises advertising sign and (ii) the cost of a new on-premises advertising sign that conforms to the local government's development regulations.

(2) On-premises advertising sign.

– A sign visible from any local or State road or highway that advertises activities conducted on the property upon which it is located or advertises the sale or lease of the property upon which it is located.

(3) Reconstruction.

– Erecting or constructing anew, including any new or modern instrumentalities, parts, or equipment that were allowed under the local development rules in place at the time the on-premises advertising sign was erected.

(b) Notwithstanding any local development regulation to the contrary, a lawfully erected on-premises advertising sign may be relocated or reconstructed within the same parcel so long as the square footage of the total advertising surface area is not increased, and the on-premises advertising sign complies with the local development rules regulations in place at the time the on-premises advertising sign was erected.

The construction work related to the relocation of the lawfully erected on-premises advertising sign shall commence within two years after the date of removal.

The local government shall have the burden to prove that the on-premises advertising sign was not lawfully erected.

(c) A local government may require the removal of a lawfully erected on-premises advertising sign under a local development regulation only if the local government pays the owner of the sign monetary compensation for the removal.

Upon payment of monetary compensation, the local government shall own the on-premises advertising sign and remove it in a timely manner.

(d) Nothing in this section shall be construed to diminish the rights given to owners or operators of nonconforming uses, including nonconforming structures,nonconformities as set Senate Bill 587-First Edition Page 7 General Assembly Of North Carolina Session 2025 forth in G.S.

160D-108 G.S.

160D-108 and G.S.

160D-108.2 or the rights of owners or operators of outdoor advertising signs in Article 11 of Chapter 136.

" SECTION 11.(a) G.S.

(3) By creating any type of nonconformity on land not in a residential zoning district, including a nonconforming use, nonconforming lot, nonconforming structure, nonconforming improvement, or nonconforming site element." SECTION 10.(b)11.(b) This section is effective when it becomes law and applies retroactively to December 11, 2024.

SECTION 11.12.

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